US President Donald Trump has reiterated that the US and India will have a trade deal soon. Speaking to media on-board Air Force One, Trump said, "I think we are going to have a deal with India. And that is going to be a different kind of a deal. It is going to be a deal where we are able to go in and compete. Right now, India does not accept anybody in. I think India is going to do that, and if they do that, we are going to have a deal for much less tariffs."
A mini-deal in the pipeline
While Trump has doubled down on India deal claims, an NDTV report quoting sources, says the two countries might sign an interim deal in the next 48 hours. According to the report, India’s trade team has extended its stay in Washington to iron out key differences, with both sides looking to seal a mini deal before the 9th July deadline, when the pause on US retaliatory tariffs ends.
Trade talks: Sticking points
Meanwhile, an Indian Express report says talks are stuck on four major products: maize, ethanol, soyabean and dairy. India’s holding firm on these, saying they’re red lines to protect its farmers and won’t be compromised. But the US wants more access in these sectors too.
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The US-Vietnam trade deal
As India and the US work through the fine print, the US has already closed a deal with Vietnam. It sets a flat 20 per cent tariff on all Vietnamese exports to the US. But here’s the twist: the US will slap a 40 per cent tariff on transhipped goods. What’s transhipment? It’s when goods are rerouted through a third country, Vietnam in this case, just to get around trade restrictions. This is a shift from the earlier 'rules of origin' playbook.
India should be cautious: Experts
Experts say, if a similar clause shows up in the India-US deal, it could hit Indian exporters hard, especially in sectors like pharma and electronics, where we rely heavily on imported components. In short, a lot is riding on the fine print, and the clock is ticking.
